5 Safe Stocks to Buy During Recessions

3. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 58

McDonald’s Corporation (NYSE:MCD) is a Chicago, Illinois-based fast-food company founded in 1940 by Richard and Maurice McDonald in San Bernardino, California.

On May 16, McDonald’s Corporation (NYSE:MCD) announced that it would exit the Russian market after serving it for three decades because of the Russia-Ukraine conflict. In a challenging macroeconomic environment, McDonald’s Corporation (NYSE:MCD) can outperform its competitors as it has a strong distribution network that helps in controlling costs during inflationary periods and delivering products through improved digital and delivery capabilities. The contribution of digital sales from the top six markets served by McDonald’s Corporation (NYSE:MCD) increased to 30% in Q1 2022 as opposed to 20% in 2020

Furthermore, the company’s ability to modify its offerings according to the local market’s needs is another plus point for the fast-food chain operator. McDonald’s Corporation (NYSE:MCD) has increased the number of restaurants making deliveries from 65% in Q1 2019 to 80% in Q1 2022. The company also reported a 12% increase in global comparable sales in Q1 2022.

At the end of Q1 2022, 58 hedge funds held a stake in McDonald’s Corporation (NYSE:MCD).